17 Jan

Iraq’s Crude Oil Production Capacity Could Hit 5 MMbpd

WRITTEN BY Gordon Kristopher

Iraq’s crude oil production

The EIA estimated that Iraq’s crude oil production increased by 60,000 bpd (barrels per day) to 4,380,000 bpd in December 2017—compared to the previous month. However, production fell by 280,000 bpd or 6% from a year ago. The year-over-year decline in production is due to ongoing production cuts.

Iraq is OPEC’s second-largest crude oil producer. Any decline in Iraq’s oil production has a positive impact on oil (BNO) (DBO) prices. It also benefits energy producers’ (XOP) (IXC) earnings like BP (BP), Chevron (CVX), Shell (RDS.A), Stone Energy (SGY), and Whiting Petroleum (WLL).

Iraq’s Crude Oil Production Capacity Could Hit 5 MMbpd

Iraq’s oil output capacity and production cuts

On January 13, 2018, Iraq’s oil minister said that the country’s oil output capacity was nearing 5,000,000 bpd. However, Iraq will abide by the ongoing production cut pact. Iraq pledged to cut production by 210,000 bpd as part of the production cut deal. Higher compliance with production cuts is bullish for oil prices. Higher oil prices favor ETFs like the iShares Global Energy ETF (IXC) and the First Trust Energy AlphaDEX Fund (FXN).

Iraq’s crude oil exports 

Iraq exported 3,400,000 bpd of crude oil from the southern ports in the country in December 2017. The exports were at 3,500,000 bpd in November 2017, according to Bloomberg. Any fall in crude oil exports is bullish for oil (USO) (DTO) prices.


Iraq targets to increase its crude oil production to 5,000,000 bpd. Any increase in crude oil production and exports is bearish for oil (UCO) (SCO) prices. Higher compliance with the production cut deal and any supply outage will be bullish for oil.

Next, we’ll discuss some crude oil price forecasts.

Latest articles

US crude oil production has more than doubled since 2009 and grew by 1.1% over the last year. Currently, there are 133 operable refineries in the US.

The cannabis industry is fighting against the ongoing US-China trade war and recessionary worries, which have hurt valuations across the global market.

Higher revenues, increased ticket prices, and lower fuel costs are likely to drive American Airlines' Q3 earnings higher despite its Boeing MAX woes.

HEXO plans to report its Q4 earnings before the market opens on October 24. October has been tough for Hexo, with its stock falling 31.2% as of October 18.

Today, Advanced Micro Devices (AMD) rose 4% to over $32, making it one of the top Nasdaq gainers. Morgan Stanley raised its price target for AMD stock.

Early in 2019, President Donald Trump warned that China could overtake the US as a global power. He vowed that this would not happen under his leadership.